Abstract
Albanian banking system is the most developed component of the financial system. Since the creation of the Albanian banking system with two levels in 1992, and its subsequent liberalization, the Albanian banking market has undergone substantial changes. Albanian banking system consists of 16 wholly owned private banks of which the majority are foreign-owned and only 3 are domestically owned banks. The main purpose of this paper is to study the Albanian banking market over the last decade through indicators that express market competition as one of the main directions of its development. The article refers to the beginning period of the global financial crisis which had an impact in the Albanian banking market. To achieve this goal are used theoretical knowledge and indexes that are used to calculate the level of competition in the banking market. Working methodology is based on statistical analysis of secondary data obtained from the Bank of Albania, commercial banks operating in Albania, the Albanian Ministry of Finance etc. Through the analysis of market indexes will try to give an overview on the current situation of the Albanian banking market. The end will conclude in several features highlighting banking markets in Albania and provide some recommendations based on the experience of other countries and the opportunities for such development in the Albanian banking market. DOI: 10.5901/ajis.2016.v5n3s1p100
Highlights
Since the creation of two-tier banking system in 1992, and its subsequent liberalization, the Albanian banking market has undergone substantial changes
By analyzing the results of the index H market loans, deposits and assets we can say that the Albanian banking market is a market partly focused
This conclusion demonstrates the fact that three to four Albanian banking system banks own over 50% of the market
Summary
Since the creation of two-tier banking system in 1992, and its subsequent liberalization, the Albanian banking market has undergone substantial changes. At the end of 2015, banking sector assets grew to 1,234 billion level, marking an annual growth of 3.9%, from 6.1% registered a year ago. This slowdown was due to lower growth in deposits and decrease the commitment of banks in the lending process. Bank (VB), International Commercial Bank (ICB), First Investment Bank (FIB) Bank, credit Bank of Albania (NBA); American Investment Bank (BAI) These banks account for about 6.5% of total banking sector assets. Banks of Group 3 (each owns about 7% of total banking sector assets), National Commercial Bank (NCB), Raiffeisen Bank (BR), Credins Bank (BC), Intesa Sanpaolo Bank-Albania (ISBA). These banks account for about 69.3% of total banking sector assets
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